| Learn the Truth About How Bankruptcy Can Affect Your Credit Report |
| Written by Casey Deanwater |
| Monday, 07 December 2009 09:18 |
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Bankruptcy Defined
Bankruptcy Defined If bankruptcy is inevitable, you may file either a Chapter 7 bankruptcy or a Chapter- bankruptcy. Chapter 7, also called a "liquidation bankruptcy," provides for the discharge of your debt. Chapter-, also called a "reorganization bankruptcy," allows you to negotiate a repayment plan. What Bankruptcy Does to Your Credit History Filing for bankruptcy will stop creditors from trying to collect the debts you owe, but WILL NOT give you a clean financial slate. Bankruptcy will seriously affect your credit report and credit worthiness. Consequently, obtaining a loan or line of credit in the future will be extremely difficult. Bankruptcy will remain on your credit report for 10 years, unless you are successful in an attempt to remove it. Keep in mind that your credit score will instantly drop hundreds of points with bankruptcy. Rebuilding your credit score is one strategy to consider. However, this is difficult when you can't find anyone to lend to you. A person who has filed bankruptcy will be considered a potential financial liability by any company that issues credit. Because of this, repairing your credit score is one strategy to consider. You can take immediate action to rebuild your credit, instead of prolonging your credit misery for 10 years until bankruptcy drops from your credit report. If you choose credit repair, you may be able to rebuild your credit score in a fraction of the time and be approved for new loans more quickly. Legally Rebuild Credit After Bankruptcy It IS legal to contest inaccurate information contained on your credit report. The Fair Credit Reporting Act (FCRA) allows you to contest any information which, in your opinion, is inaccurate. If you send a dispute letter to a creditor or credit bureau, the disputed entry must be investigated and verified within a specific timeframe. Subsequently, the negative entry must be deleted in its entirety if it cannot be verified. Expert advice can be invaluable if you decide to pursue rebuilding your credit. Lexington Law's legal professionals can guide and assist you in your attempt to remove negative entries. Consider contacting Lexington Law to get the assistance you need to clean up negative entries on your credit report. About the Author: We raised our credit scores from the upper 500 range to 745 and 763 in under six months and got approved for our dream home. See proof of our credit repair success at www.creditforcouples.com and get the real truth about lexingtonlaw.com . |